The Hindu Business Line : Merger prospects boost it

The talk is that the merger ratio is likely to be in favour of the IDBI Bank shareholders. The merger ratio that is talked is 1.5 share of IDBI Bank for every one share of IDBI.

The boards of these two institutions meet on Thursday to decide the merger ratio.

On these expectations there was buying in the shares of IDBI Bank and selling in IDBI. This happened, as the initial expectation was a merger ratio in favour of IDBI.

On Wednesday, the stock of IDBI Bank gained 2.37 per cent at Rs 71.35 on the BSE and IDBI closed at Rs 113.30, down 2.03 per cent.

Hopes on strong Q3 numbers

ANOTHER big corporate announcement that is being watch by the market players is the third quarter results of Tata Steel.

If market talk is to be believed, the company's results would be much better than the previous quarters of this fiscal. Market expectations are that the net profit would be close to Rs 1,000 crore. Such a good performance is possible due to the uptrend in steel prices.

On Wednesday, the stock price of the company gained 1.29 per cent at Rs 348.40 on the BSE with volumes of 30.15 lakh shares; on the NSE, it closed at Rs 348.50, up 1.29 per cent, with volumes of 56.22 lakh shares.

Selective buying seen

AFTER a long time, the stock price of Saw Pipes gained sharply. Dealers said the rise in the stock price was due to a few smart investors buying the shares of the company.

The talk is that these investors bought the shares of the company on expectation of strong first quarter results.

Saw Pipes has October-September financial year. The company's board meets on January 25 for the results.

The talk is that the first quarter financial numbers would be better than the corresponding quarter result of last year. Market is not comparing the September quarter as it is the last quarter, which is generally best one for the company.

On Wednesday, the stock price of the company gained 9.74 per cent at Rs 227.55 on the BSE with volumes of 4.55 lakh shares; on the NSE, it closed at Rs 227.15, up 9.39 per cent, with volumes of 8.62 lakh shares.

Virendra Verma

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